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Best ULIP Funds - Consider the best performing ULIP funds to invest in 2023 with Policybazaar. Find the list of best ULIP funds in India on the basis of Returns, Latest Nav, Fund Size and Categories
ULIP, also known as Unit Linked Insurance Plan, is a financial product that combines insurance coverage with investment avenues. By allocating premiums between life insurance and diverse funds, it offers both potential returns and protection for your loved ones.
Guaranteed Tax Savings
Under sec 80C & 10(10D)^₹1 Crore
Invest ₹10k Per Month*Zero LTCG Tax
Unlike 10% in Mutual FundsFund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
---|---|---|---|---|---|---|
![]() Top 200 Fund
Fund Size: 1,259 Cr
|
1,259 Cr |
130.92 -0.08% |
24.81% Highest Returns |
21.74% |
20.25% |
Get Details |
![]() Virtue II
Fund Size: 2,155 Cr
|
2,155 Cr |
55.06 -0.10% |
19.25% Highest Returns |
18.11% |
17.26% |
Get Details |
![]() Pure Equity
Fund Size: 1,804 Cr
|
1,804 Cr |
57.44 0.05% |
15.93% |
15.32% |
16.8% Highest Returns |
Get Details |
![]() Super Select Equity Fund
Fund Size: 1,129 Cr
|
1,129 Cr |
63.4 0.03% |
15.56% |
15.97% |
16.78% Highest Returns |
Get Details |
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
---|---|---|---|---|---|---|
![]() Whole Life Mid Cap Equity Fund
Fund Size: 10,158 Cr
|
10,158 Cr |
112.98 -0.23% |
20.95% |
18.38% |
21.46% Highest Returns |
Get Details |
![]() Multiplier
Fund Size: 3,446 Cr
|
3,446 Cr |
73.07 -0.09% |
17.1% |
15.82% |
19.88% Highest Returns |
Get Details |
![]() Midcap Fund
Fund Size: 1,038 Cr
|
1,038 Cr |
68.14 -0.01% |
18.46% |
16.1% |
19.85% Highest Returns |
Get Details |
![]() Opportunities Fund
Fund Size: 31,393 Cr
|
31,393 Cr |
57.85 0.06% |
16.37% |
14.93% |
18.59% Highest Returns |
Get Details |
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
---|---|---|---|---|---|---|
![]() Whole Life Stable Growth Fund
Fund Size: 210 Cr
|
210 Cr |
50.47 0.01% |
13.39% Highest Returns |
12.14% |
12.58% |
Get Details |
![]() Balanced Fund
Fund Size: 1,474 Cr
|
1,474 Cr |
15.17 0.00% |
- |
- |
11.85% Highest Returns |
Get Details |
![]() Creator
Fund Size: 500 Cr
|
500 Cr |
84.37 0.12% |
10.2% |
9.82% |
10.92% Highest Returns |
Get Details |
![]() Multi Cap Balanced Fund
Fund Size: 2,037 Cr
|
2,037 Cr |
34.46 0.02% |
9.56% |
9.01% |
10.59% Highest Returns |
Get Details |
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
---|---|---|---|---|---|---|
![]() Pure Fund
Fund Size: 411 Cr
|
411 Cr |
39.2 0.04% |
13.87% |
13.62% |
15.31% Highest Returns |
Get Details |
![]() Builder
Fund Size: 242 Cr
|
242 Cr |
79.8 0.09% |
8.11% |
7.45% |
9.18% Highest Returns |
Get Details |
![]() Secured Fund
Fund Size: 532 Cr
|
532 Cr |
13.81 0.00% |
9.05% Highest Returns |
9.05% Highest Returns |
9.05% Highest Returns |
Get Details |
![]() Whole Life Income Fund
Fund Size: 776 Cr
|
776 Cr |
34.92 0.05% |
7.31% |
6.39% |
8.3% Highest Returns |
Get Details |
Best ULIP Funds - Consider the best performing ULIP funds to invest in 2023 with Policybazaar. Find the list of best ULIP funds in India on the basis of Returns, Latest Nav, Fund Size and Categories
Unit Linked Insurance Plans (ULIPs) are a type of financial product that combines investment and insurance benefits. When you invest in a ULIP, a part of your premium goes towards providing you with life insurance coverage, while the rest is invested in funds of your choice. This makes ULIP plans a unique investment option that can help you achieve your financial goals while also protecting your loved ones in case of an unforeseen event.
You hold the power to select from a diverse range of options – be it equity, debt, or a mix of both funds.
ULIPs are popular because they offer flexibility to policyholders to choose and allocate funds according to their risk appetite and financial goals. Additionally, ULIPs offer tax benefits under the Income Tax Act, 1961.
Here are the features of ULIPs:
Dual Benefit: With ULIPs, you get the dual advantage of insurance and investment. While a portion of your premium ensures you're covered with life insurance, the other part is invested in various funds of your choice.
Flexibility: You have the freedom to switch between funds based on your risk appetite and market conditions. Whether you're a conservative investor or someone who loves to take risks, ULIPs offer a range of funds to suit your style.
Transparency: You always know where your money is going. Detailed statements show you the charges applied, the amount invested, and the insurance coverage you have.
Liquidity: After the initial lock-in period, which is 5 years, you can make partial withdrawals to meet any unforeseen financial needs.
Tax Benefits: Investing in ULIPs can help you avail tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity proceeds you receive are tax-free under Section 10(10D).
Long-Term Investment: ULIPs encourage you to think long-term. With benefits that compound over the years, you're incentivized to stay invested and watch your wealth grow.
Top-Up Facility: Got some extra cash? You can invest it in your ULIP through the top-up facility, enhancing your fund value and potential returns.
Life Cover: Your loved ones are always protected. In the unfortunate event of your demise, they will receive the sum assured or the fund value, whichever is higher.
Performance Tracking: ULIPs allow you to monitor the performance of your investments. You can see how your funds are doing and make informed decisions about switching or staying.
Other benefits that the best ULIP plans offer are:
Dual Benefits: When you invest in a ULIP plan, you enjoy the dual advantages of both investment and insurance in one package. This means you can channel your funds into various market-linked options while also securing life coverage under that very policy.
Transparency: With ULIP plans, there's no hidden agenda. Everything from charges to fund performance is transparent. The Insurance Regulatory and Development Authority (IRDAI) ensures that all insurers lay out their fees upfront.
Tax Benefits: Under Section 80C and 10(10D) of the Income Tax Act, 1961, the premium you pay towards your ULIP policy can be deducted from your taxable income. You can claim deductions up to Rs. 1.5 lakh annually.
Long-term Wealth Creation: ULIP Plans aren't just short-term investments. They're designed for the long haul, maximizing wealth creation over extended periods. Thanks to the power of compounding, you can build a substantial corpus over the years.
Flexibility to Switch Funds: ULIPs don't lock you into one investment strategy. You have the freedom to switch between different ULIP funds based on your investment objectives and risk tolerance. This means you can regularly tailor your investment portfolio to aim for the best returns.
Protecting Your Child's Future: Considering your child's future? Child ULIP plans are crafted precisely for this purpose. They come with a standout feature: the "Waiver of Premium.” If something were to happen to you, like a critical illness or disability, this feature ensures your child's policy remains active. Future premiums? They're waived off, and the policy continues as initially agreed.
Lock-in Period: ULIPs have a 5-year lock-in period. This isn't just a random number; it encourages disciplined investment. By committing for this duration, you're setting yourself up for long-term financial stability and the potential for maximum returns.
ULIPs are classified based on their purpose and death benefit. Let us learn about them in detail.
Classification by Purpose: ULIPs are best classified on the basis of the purpose they serve:
ULIPs for Retirement: With Whole Life ULIPs, you have an effective retirement planning tool. The investment component of these plans lets you accumulate a significant corpus over the long term. Imagine having a substantial amount ready for your retirement needs, paid out to you in the form of annuities once you retire.
ULIPs for Wealth Collection: Are you in your late twenties or early thirties? ULIPs could be your ticket to accumulating wealth over time. By investing in this plan, you gain the flexibility to fund your future financial goals. Think of it as a strategic move to secure your financial future.
ULIPs for Children's Education: As a parent, don't you want the best for your child's education? ULIPs designed for children come with a waiver of premium features. Imagine a situation where, due to disability, critical illness, or even death, you're unable to pay the premium. This feature ensures that your policy continues without any hitches, making sure the financial goals you've set for your child's future remain uncompromised.
ULIPs for Health Benefits: Did you know that ULIPs offer more than just common benefits? They efficiently provide financial assistance to tackle medical emergencies. So, when health challenges arise, you have a financial cushion to fall back on.
Classification by Death Benefits: Unit Linked Insurance Plans can also be categorized on different criteria or norms. For instance, ULIPs are categorized into two broad categories depending on the death benefit. Type 1 and Type 2 ULIPs.
Parameter | Type 1 ULIPs | Type 2 ULIPs |
Lock-in period | 5 years | 5 years |
Investment options | Equity, debt, or a mix of both | Equity |
Returns | Market-linked returns | Assured returns |
Death Benefit | Plans pay either the sum assured or the higher fund value to the nominee upon the policyholder's death. For example: If the sum assured is ₹40 Lakh and the fund value is ₹50 Lakh, the beneficiary shall receive the fund value. |
Plans pay the sum assured and the fund value together, resulting in a higher premium and a larger payout to the nominee. For example: If the sum assured is ₹40 Lakh and the fund value is ₹50 Lakh, the beneficiary shall receive ₹90 lakh (₹40 lakh sum assured + ₹50 lakh fund value). |
Objective | Guaranteed death benefit payout | Higher returns |
Suitable for | Risk-averse investors | Risk-taking investors |
Investor Profile | Conservative, not willing to take investment risks | Comfortable with market volatility |
Sum at Risk | As the fund value steadily increases over time, the amount of risk faced by the insurance company decreases correspondingly. | Insurance company's liability for the death benefit remains unchanged as they are obligated to pay the specified amount assured in the policy. The "sum at risk" remains consistent for the insurer. |
Common types of funds available with their risk characteristics are:
Large Cap Funds: These ULIP funds primarily invest in stocks of well-established and financially stable large-cap companies that are in the Top 100 companies. For example, Nifty 50 stocks.
Mid Cap Funds: Mid Cap ULIP funds invest in stocks of medium-sized companies with the objective of generating higher returns than large-cap funds, albeit with relatively higher risks due to the smaller size of the companies.
Debt Funds: Debt ULIP funds predominantly invest in fixed-income securities such as government bonds, corporate bonds, and debentures, aiming for stable income generation and capital preservation, making them less volatile than equity funds.
Balanced Funds: Balanced ULIP funds strike a balance between equity and debt investments, providing potential for capital appreciation through equity allocation while offering stability and income generation through debt allocation, suitable for investors seeking a moderate risk-reward profile.
ULIPs provide the dual benefit of insurance coverage and investment growth. Here's how ULIPs work:
Best ULIP Plans combine life insurance coverage with investment opportunities.
A portion of the premium you pay goes towards providing life insurance, while the rest is invested in various funds based on your investment objective and risk appetite.
The investment component is linked to the performance of the funds like Mid Cap Fund, Large Cap Fund, Debt Fund and Balanced Fund you have selected. If the value of the underlying funds goes up, the value of your ULIP investment also increases, and vice versa.
ULIPs offer investors the flexibility to switch between different funds as per market conditions and performance.
At the end of the policy term, you can either choose a lump sum payout or receive regular annuity payments.
You also have the option to extend your ULIP plan or convert it into a pure investment product.
Akash, a 30-year-old man, invests in a Unit Linked Insurance Plan for 20 years. He pays a yearly premium of Rs. 50,000 for 10 years.
Policy Details:
Initial Sum Assured = Rs. 5,00,000 (yearly premium x 10)
Annual Administration and other charges = Rs. 2500
Total Annual Investment = Rs. 47,500
Initial NAV Value = Rs. 10
Units purchased = (47500/10) = 4750
Death Benefits | Maturity Benefits |
Payment made to the nominee if Akash dies within the policy term = Rs. 5,00,000 (Sum Assured) or the Fund Value (whichever is higher). | Payment made at the time of maturity if Akash is alive, which is the Fund Value. |
The following are the ULIPs for different classes of investors:
Long-Term Investors: If you're someone who believes in long-term investments and can stay committed for a period of at least 10-15 years, ULIPs could be a good fit. The longer duration helps in maximizing the potential returns from the equity market.
Risk Takers: Since a portion of the ULIP is invested in market-linked funds, there's an inherent risk involved. If you have an appetite for risk and understand market fluctuations, ULIPs might appeal to you.
Seeking Dual Benefits: Are you looking for both insurance and investment under a single plan? ULIPs offer this dual advantage, making them suitable for those wanting a combined package.
Tax Savers: ULIPs offer tax benefits under Section 80C of the Income Tax Act for the premiums paid. If you're aiming to save on taxes, this could be an added incentive.
Flexible Investors: If you like the idea of being able to switch between funds based on market conditions, ULIPs offer this flexibility. You can move your investments from equity to debt funds and vice versa, depending on market performance and your risk appetite.
Goal-Oriented Individuals: If you have specific financial goals like buying a home, funding your child's education, or planning for retirement, ULIPs can be structured to help you achieve these milestones.
Not Looking for Immediate Liquidity: ULIPs usually come with a lock-in period, often of 5 years. If you're okay with not having immediate access to your funds and can wait out the lock-in period, ULIPs might be suitable.
Let’s look at the detailed comparison between ULIP vs Mutual Funds:
Aspect | ULIP Plans | Mutual Funds |
Investment Objective | Multiple Funds options in the same investment plan. Asset classes available: equity, debt, Corporate debt & MMI |
Investment in a single fund. Asset classes available: equity, debt, gold, commodities & MMI |
Fund Management | Investment strategies are available to automatically switch between funds according to the preference of the investor. Free Fund switching & rebalancing in all plans |
No Investment strategies No free switching (exit charges ~ 1.5% applicable + Tax on profits earned) |
Tax Benefits | Tax Saving on Premium & Zero capital gain tax on Returns/maturity | LTCG of 10% applicable on maturity amount |
Yearly Returns | Average Return: 14% | Average Return: 12.5% |
Total Charges | Cannot exceed 2.25% by IRDAI regulation | Cannot exceed 2.5% by SEBI regulation |
Death Benefits | Insurance cover of 10X of the annual premium is claimable, more benefits can be availed through additional riders | No insurance cover |
Transparency |
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Let’s take a look at the steps to purchase the best ULIP plans online:
Step 1: Go to the official Policybazaar website.
Step 2: On the homepage, you'll find various insurance categories. Click on the 'ULIP Plans' option.
Step 3: You'll be prompted to enter some basic details like your name, mobile number, email, and other relevant information. This helps Policybazaar provide you with the most suitable ULIP plans based on your profile.
Step 4: Once you've entered your details, you'll be presented with a list of best ULIP plans from various insurance providers. You can compare these plans based on their features, benefits, premiums, fund options, and other relevant parameters.
Step 5: After comparing, select the ULIP plan that best suits your needs and click on the 'Buy Now' or 'Proceed' button.
Step 6: You'll be taken to a detailed form where you'll need to provide more specific information about yourself, your nominee, and other relevant details.
Step 7: ULIPs allow you to invest in various funds based on your risk appetite. You can choose between equity, debt, or hybrid funds. Make your selection based on your investment goals and risk tolerance.
Step 8: After filling in all the details and choosing your investment funds, you'll be directed to the payment page. You can make the payment using various methods like credit/debit cards, net banking, UPI, etc.
Step 9: Once your payment is successful, you'll receive a confirmation, and the policy document will be sent to your registered email address. Some insurance providers might also send a physical copy to your registered address.
Step 10: Review the policy document to ensure all details are correct. Store the document safely, both the digital and physical copies.
A ULIP calculator is an online tool that helps investors calculate their premium payments and expected returns based on their investment horizon, risk, and financial goals. The calculator takes into account various factors, such as
Amount you wish to invest (monthly/yearly/one-time)
Policy tenure (for which you wish to stay invested)
Periodic investment period (for which you wish to pay premiums)
Expected rate of return
By entering these specifics, the investors can analyze projected investment growth overall and choose a preferred plan.
ULIPs have certain charges associated with them, which are sub-divided into the following different categories:
Premium allocation charge: The fee charged by the insurance company for allocating the principal to various investment funds.
Fund management charge: The fee charged by the fund manager for managing the investment portfolio of ULIP.
Mortality charge: The fee charged by the insurance company for providing the life cover under ULIP.
Policy administration charge: The fee charged by the insurance company to maintain policy records and provide services.
Switching charge: The fee charged for switching between different investment funds.
Partial withdrawal charge: The fee charged for making partial withdrawals from the investment corpus.
Discontinuance or Surrender Charges: If the ULIP is terminated before 4 years, a discontinuance charge will be applied. However, no surrender charges are imposed after the 5th year. The amount of these charges can range from ₹1,000 to ₹4,000, depending on the premium, calculated as a percentage of the fund's value and premium. The Insurance Regulatory and Development Authority of India (IRDAI) establishes the basis for these charges, ensuring they do not exceed the acquisition cost incurred by the insurer.
ULIP NAV stands for Net Asset Value of Unit Linked Insurance Plan. It is the value of a single unit of a ULIP fund. ULIP NAV is calculated by dividing the total value of the fund's assets by the number of outstanding units.
ULIP NAV is important because it determines the value of your investment. When you invest in a ULIP, you buy units at the current NAV. The value of your investment will increase or decrease depending on the performance of the fund and the changes in the NAV.
ULIP NAV is calculated and published daily by the insurance company. You can find the NAV of your ULIP fund on the insurance company's website or in the fund's fact sheet.
Many myths surround Unit Linked Insurance Plans. Let us debunk some of the common myths of a ULIP plan:
Myth 1: ULIPs are risky financial instruments
Reality: ULIP plans are a combination of part investment and part insurance. Since investors can choose if they want to invest in debt, equity, or a combination of both, the investment risk varies for all. Equity-linked funds are the riskiest of all but offer the highest returns.
Myth 2: ULIPs are expensive due to high charges
Reality: ULIPs have very low charges. The new age ULIPs come with features like Zero Premium Allocation & admin charges.
Myth 3: ULIPs mandate continuation
Reality: Investors can discontinue a ULIP plan after a 5-years lock-in period without any surrender charges. While not mandatory, it is in the best interest to continue investing in ULIPs after 5-years as it helps accumulate a higher corpus in the long run.
Myth 4: Market volatility reduces life cover
Reality: The life cover remains unchanged despite market fluctuations. If the insured passes away during the policy term, ULIP plans pay either the complete life cover or the fund value, whichever is higher.
New-age ULIPs are a new generation of Unit Linked Insurance Plans that offer a number of advantages over traditional ULIPs. These plans are more flexible, transparent, and cost-effective, making them a more attractive option for investors.
Some of the key features of new-age ULIPs include:
Lower charges: New-age ULIPs have lower charges than traditional ULIPs, such as premium allocation charges, fund management charges, and policy administration charges. This can result in higher returns for investors over the long term.
Greater flexibility: New-age ULIPs offer greater flexibility in terms of investment options, fund switching, and partial withdrawals. This allows investors to tailor their investment strategy to their individual needs and risk appetite.
Enhanced transparency: New-age ULIPs offer enhanced transparency in terms of fund performance and investment costs. This helps investors make informed decisions about their investments.
Overall, new-age ULIPs offer a number of advantages over traditional ULIPs. Investors looking for a flexible, transparent, and cost-effective investment option should consider investing in a new-age ULIP.
ULIPs, blending insurance and investment, offer a unique financial solution for those seeking dual benefits. While they provide the security of life coverage, their investment component allows for potential wealth accumulation. In the ever-evolving financial landscape, ULIPs remain a noteworthy option for informed investors.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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